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Alberto Abaterusso
Alberto Abaterusso
Articles (1478) 

3 High-Performing Large-Cap Stocks

Intercontinental Exchange tops the list

May 15, 2019 | About:

These large-cap companies have had positive performances on the stock market over the past week, month, year and three years.

These companies benefit from strong financial situations resulting from debt-equity ratios of less than 50% and from return on invested capital ratios that are more than 300 basis points higher than the weighted average cost of capital ratio.

Further, these stocks are expected to outperform either the industry or the entire market within 52 weeks as Wall Street analysts issued overweight recommendation ratings for each of them.

Intercontinental Exchange Inc. (NYSE:ICE) has gained 2.4% over the last month, 7.9% so far this year, 12.5% over the past 52 weeks and 55.4% over the last three years through May 14.

The share price was $81.31 on Tuesday for a market capitalization of $45.85 billion. The stock has a price-earnings ratio of 23.3 compared to the industry median of 17.6, a price-book ratio of 2.7 versus the industry median of 1.2 and a price-sales ratio of 7.4 versus the industry median of 3.4.

The Atlanta-based operator of financial exchanges has a price target of $88.31, reflecting 8.6% growth from the closing share price on Tuesday.

The stock has a return on invested capital ratio of 9%, topping the weighted average cost of capital ratio of 5% by 400 basis points. The total debt-to-equity ratio is 44% versus the industry median of 41%.

The company also has a dividend yield of 1.16% versus the industry median of 2.4% (yields are as of May 14). The company has paid dividends since 2013.

The Peter Lynch chart suggests the stock may be overvalued. 

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MercadoLibre Inc (NASDAQ:MELI) has climbed 12% over the last month, 92% year to date, 84.4% over the last 52 weeks and 337% over the past three years through May 14.

The Argentine operator of e-commer platforms in Latin American was trading around $562.69 per share on Tuesday for a market capitalization of $27.8 billion. The stock has a forward price-earnings ratio of 285.71 versus the industry median of 17.9, a price-book ratio of 11.71 compared to an industry median of 1.63 and a price-sales ratio of 15.96 versus an industry median of 0.68.

The stock has an average target price of $554.75.

The stock has a return on invested capital ratio of 22.3%, which tops the weighted average cost of capital ratio of 14.5% by 780 basis points. The total debt-to-equity ratio is 32% compared to the industry median of 43%.

After distributing quarterly dividends for seven years in a row, the company did not pay dividends in 2018.

The Peter Lynch chart suggests the stock is expensive.

0f96c580-7729-11e9-bb6d-2d5dfdb0f5bb.png

Kyocera Corp. (KYOCY) has gained 2.6% over the last month, 27.3% year to date, 5.2% over the last 12 months and 28% over the past three years through May 14.

The Japanese  consumer electronics distributor was trading around $63.45 per share on Tuesday for a market capitalization of about $22.65 billion. The stock has a price-earnings ratio of 25.2 versus the industry median of 16.75, a price-book ratio of 1.1 versus an industry median of 1.5 and a price-sales ratio of 1.5 versus the industry median of 1.

The stock has a price target of $64.21, reflecting 2.3% upside from the closing price on Tuesday.

At 4.05%, the stock’s return on invested capital is 321 basis points above the weighted average cost of capital ratio of 0.84%. The company doesn't have any debt.

The company paid a dividend of $1.07 per share in 2018 for a dividend yield of 0.84% as of May 14.

According to the Peter Lynch chart, the stock is not cheap.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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